BEACHWOOD, Ohio – SITE Centers Corp. (NYSE:SITC), a real estate investment trust, announced significant changes to its Board of Directors in anticipation of the upcoming spinoff of its convenience retail properties into a new entity, Curbline Properties Corp. The restructuring, which took effect on Monday, reduces the board size from eight to five members.
The company confirmed the resignation of six directors – Linda B. Abraham, Terrance R. Ahern, Jane E. DeFlorio, Victor B. MacFarlane, Alexander Otto, and Barry A. Sholem – effective on the day before the spinoff date, known as the Antecedent Date. These departures were not due to disagreements with the company or its management.
SITE Centers Corp. also announced the appointment of three new directors: Gary N. Boston, John M. Cattonar, and Cynthia Foster Curry, whose terms will commence on the Antecedent Date and continue until the 2025 Annual Meeting of Shareholders or until their earlier resignation or removal.
John M. Cattonar, already party to an employment agreement with both SITE Centers Corp. and Curbline, will not receive additional compensation for his board role during his tenure as an executive officer. New indemnification agreements, mirroring the existing standard for directors and officers, will be executed for the newly appointed directors.
Following the spinoff, SITE Centers Corp. plans to implement a revised compensation program for non-employee directors. This program includes an annual cash retainer of $60,000, additional retainers for committee chairs, meeting fees for attendance beyond the standard number of meetings, and an upfront restricted share units grant valued at $300,000 with a vesting period over three years.
The new directors are expected to join the Audit, Compensation, and Nominating and ESG Committees from the Antecedent Date. There are no reported arrangements or understandings between the new directors and any other persons regarding their appointment, nor are there any transactions requiring disclosure under SEC regulations. This announcement is based on a press release statement and the company's recent SEC filing.
In other recent news, SITE Centers has sold 13 properties for a total of $714.3 million, which contributed to the repayment of $159.0 million of its $530.0 million mortgage facility. The company also acquired six convenience shopping centers for a combined price of $111.2 million.
Furthermore, SITE Centers is preparing for the spin-off of Curbline Properties, which is expected to be endowed with $600 million in cash, a $400 million undrawn line of credit, and a $100 million term loan. The company has executed a one-for-four reverse stock split, reducing the number of outstanding common shares.
According to analysts from JPMorgan (NYSE:JPM) and Piper Sandler, these strategic moves reflect SITE Centers' transition towards its CURB strategy. The company's portfolio, less reliant on small shops and local businesses, may offer resilience compared to its peers. The analysts also highlighted the lower operating costs associated with CURB's convenience assets, which enjoy high occupancy rates between 96% and 98%.
InvestingPro Insights
In light of the recent board restructuring at SITE Centers Corp. (NYSE:SITC), investors may find additional context through InvestingPro insights. Notably, the company boasts a high shareholder yield, which could be particularly attractive in the current economic environment. This is complemented by the fact that SITE Centers has consistently raised its dividend for 3 consecutive years, showcasing a commitment to returning value to shareholders. Moreover, the company is trading at low EBITDA and earnings valuation multiples, suggesting that it may be undervalued relative to its earnings potential.
From a financial standpoint, SITE Centers Corp. maintains a market capitalization of approximately $3.17 billion. The company's P/E ratio stands at 7.08, which may appeal to value-oriented investors looking for lower-priced stocks relative to earnings. Mooreover, the PEG ratio, a metric that relates the P/E ratio to growth expectations, is at a very low 0.02, indicating potential for growth at a reasonable price. Lastly, with a dividend yield of 3.44%, SITE Centers offers a competitive income stream for dividend investors.
For those looking to delve deeper into SITE Centers' financial health and future prospects, InvestingPro provides a comprehensive suite of tools and additional InvestingPro Tips, with over 10 more tips available for SITE Centers, offering a more granular analysis of the company's performance and potential investment opportunities.
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